Hydrogen, Chips and Video Games: Which Stocks Have Growth Potential in 2022
Co-manager of Aegon Global Equity Income Fund Mark Peden considers the American company Broadcom to be one of the best securities for 2022. He says the company's strong position in semiconductor products means Broadcom will benefit from the growing need for self-driving cars and cloud computing.
The expert also said that Broadcom is generating "enormous amounts of cash" - in December, the company announced that it plans to complete a $10 billion share buyback programme. In addition, the company increased its quarterly dividend by 14% to $4.10 per share and plans to pay shareholders about $7 billion in dividends.
In addition to the technology company, Peden pointed to the prospects of US chemical corporation Air Products & Chemical, which he described as a global leader in pure hydrogen. Air Products & Chemical is listed on the major stock indices and is among the "dividend aristocrats" with a yield of 2.2%. The company has increased its dividend for 39 consecutive years and in 2020 Air Products signed a contract to work on the world's largest carbon-free hydrogen project.
"When the project is up and running, it will avoid more than 3 million tonnes of carbon entering our atmosphere a year, the equivalent of taking 700,000 cars off the roads,"- said Peden.
French electrical equipment company Schneider Electric has been added to the Aegon Global Equity Income Fund's list of top stocks for 2022. By 2025, much of Schneider's revenues will be directly dependent on technologies such as the internet of things, Peden believes.
Apart from him, other experts named their favourites for 2022. For example, AXA Investment Managers portfolio manager Amanda O'Toole is confident about the future of Li-Cycle Holdings. The company recycles lithium-ion batteries, which are difficult to dispose of at the end of a car's life.